Tesla's volatility could be costing it millions in lost investments, an analyst warns (TSLA)

Graham Rapier

Aug. 28, 2018, 09:42 AM

John Raoux/AP Images

As Toyota invests in Uber and other self-driving-vehicle startups, one analyst is worried Tesla could get left behind.

"We are left wondering if Tesla should have been in the mix for those investments; the company's volatile image could also leave it out of the discussion for future investments," Canaccord Genuity told clients Tuesday.

Dorsheimer has slashed his price target for Tesla shares to $316 — roughly in line with Tuesday's opening price — from $336 following Musk's failed bid to take the company private. Specifically, he's worried about the $230 million and $920 million of corporate debt due in November and March.

"Tesla will need to secure profitability by the end of the year to maintain solvency," Dorsheimer wrote. With Tesla's second-quarter earnings report indicating the company had only $2.2 billion of cash on hand, he estimates Tesla "only has enough cash to maintain operations for another six to nine months at its current rate."